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Cyprus Finance Minister Details Economic Plan Amid Regional Risks

Economic Oversight And Fiscal Responsibility

Cyprus Finance Minister Makis Keravnos has firmly ruled out any discussion of a blanket freeze on foreclosures following a recent meeting with a Disy delegation led by party president and House speaker Annita Demetriou. The minister emphasized that any decisions regarding foreclosures must be grounded in reason and balance, a stance that comes as international rating agencies, the European Union, and key financial institutions closely scrutinize the country’s fiscal policies.

Strengthening Institutional Frameworks

Keravnos underscored the importance of reinforcing the existing mechanisms that manage distressed loans and property repossessions. “We must strengthen the role of the Financial Commissioner to resolve issues without jeopardizing our economy,” he stated. This approach aims to avoid broad, horizontal measures that could inadvertently exacerbate economic realities.

Navigating Regional And Health Challenges

The minister also pointed to the broader regional geopolitical shifts and their potential economic repercussions, noting that his team is rigorously analyzing daily developments and various scenarios. Alongside these economic concerns, immediate and decisive action is being prioritized to counter a recent outbreak of foot-and-mouth disease. Four Slovak veterinarians have been deployed to Cyprus to assist with culling, sampling, and epidemiological investigations after the disease affected 42 farms across three districts. The government has also announced a €28 million support package for impacted farmers, highlighting the urgency of adherence to strict protocols.

By reinforcing institutional capacities and maintaining a measured approach to foreclosure decisions, Keravnos’s strategy reflects a commitment to safeguard the nation’s economic stability while navigating both internal challenges and international scrutiny.

Cyprus Property Deals Reach €286 Million Despite Second-Quarter Uncertainty

Cyprus’ high-end property market remained active in the first half of 2026, although geopolitical uncertainty may have weighed on investment activity during the second quarter.

€286.4 Million Across The 50 Largest Deals

Property transactions worth a combined €286.4 million ranked among Cyprus’ 50 highest-value deals completed between January and June, according to real estate analytics firm Ask Wire.

Examining the country’s biggest sales across all districts, the report found that the 10 largest transactions alone accounted for €161.7 million, highlighting the concentration of activity at the upper end of the market.

Limassol Extends Its Lead

A €55 million sale involving a building and adjoining fields in Moni was the largest property transaction recorded during the period.

Six of the country’s 10 biggest deals took place in Limassol, with a combined value of €117.2 million. Paphos followed with three transactions worth €35.5 million, while Larnaca recorded one €9 million sale.

Across the broader ranking, Limassol’s 10 largest transactions reached €148.2 million, representing 51.7% of the total value of the top 50 deals. Paphos followed with €68.8 million (24%), while Nicosia recorded €26.7 million. Famagusta narrowly surpassed Larnaca, reaching €21.4 million compared with €21.2 million.

Land Continues To Drive High-Value Deals

According to Ask Wire CEO Pavlos Loizou, land acquisitions continue to dominate Cyprus’ largest property transactions.

“The land market dominates the list of the 10 highest-value property transactions, with seven sales involving fields and plots.”

Many of those sites are expected to be developed into luxury residential and hospitality projects, he added.

Office Demand Remains Strong

Growing demand for office space also reflects the expansion of international companies establishing operations in Cyprus, Loizou said.

“We continue to observe growing demand for office properties, reflecting the expansion of the new ecosystem of international companies that has been establishing itself in Cyprus in recent years.”

Eight of the 10 largest transactions were completed during the first quarter of 2026, with activity slowing in the following three months.

Loizou said the slowdown may reflect investor caution linked to the conflict in the Middle East, which appears to have influenced investment decisions during the second quarter.

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